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              Congressional                                              ______
              Research Service






En Banc Fourth Circuit Weighs Medicaid and

State Health Plan Coverage of Certain Medical

Care for Transgender Individuals



December 22, 2023

States have recently considered the extent to which transgender individuals should have access to certain
medical treatments to address a discordance between a person's sex characteristics and gender identity.
While some states have enacted legislation ensuring that such services are available to transgender
people, other states have policies restricting access to or otherwise limiting health coverage for them.
Some  of these restrictions are specific to minors, but others cover adults as well. For example, the West
Virginia Medicaid program provides a blanket coverage exclusion for transsexual surgery, and North
Carolina's State Health Plan for Teachers and State Employees (NCSHP) categorically excludes coverage
for treatments leading to or in connection with sex changes or modifications.
The West Virginia Medicaid and NCSHP coverage exclusions, as well as other similar Medicaid and state
health insurance coverage policies, have been challenged in federal court on the basis that the exclusions
constitute sex discrimination in violation of the Fourteenth Amendment's Equal Protection Clause and
Section 1557 of the Patient Protection and Affordable Care Act (ACA), among other claims. District and
appellate courts across the country considering similar coverage exclusions have arrived at different
conclusions, disagreeing about the appropriate level of scrutiny to be applied. For example, a Wisconsin
federal district court held that the state health plan's exclusion of coverage for surgery and sex hormones
associated with gender reassignment violated the Equal Protection Clause and Section 1557. (The parties
agreed to voluntarily dismiss their cross-appeals to the Seventh Circuit.)
With respect to Medicaid coverage, the Northern District of Florida held that a state law banning
Medicaid reimbursements for sex reassignment prescriptions or procedures, violated the Equal
Protection Clause and Section 1557 of the ACA, among other federal laws. The decision was appealed to
and is currently pending before the Eleventh Circuit. On the other hand, in denying to preliminarily enjoin
enforcement of the state Medicaid program's coverage ban of gender reassignment surgeries for minors,
an Arizona district court reasoned, in part, that the plaintiffs had not sufficiently demonstrated that such
surgeries were medically necessary, safe, or effective for treating gender dysphoria because the record
contained conflicting expert opinions on those issues. The Ninth Circuit affirmed. (The litigation in the
Arizona district court was voluntarily dismissed in 2022 prior to any final decision on the merits.)

                                                                Congressional Research Service
                                                                  https://crsreports.congress.gov
                                                                                     LSB11092

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